-SERVICE OF THE STUDENTS' LOAN FUND​-

IMPROVED SERVICE

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Röskva deems it necessary to improve the service of the Student Loan Fund. There is a need  for increased access to information and consultation. Examples of delayed payments of student loans should be history. Röskva believes the best way in which to improve the service could be regularly submitted service surveys amongst payers and payees. The results of such surveys should be publicised and used to make the fund’s service and introductory content user-friendly. The results should also be used in the audit of the laws.

 

EXCHANGE STUDENT ON STUDENT LOANS

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Semesters are often differently structured in universities overseas, which leads to problems with semesters being over too early or too late for the fund’s criteria. Röskva deems it neccessary that the Student Loan Fund take this into account so that students can study abroad without having their loan rights impaired.

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-BASIC SUBSISTENCE AND MAXIMUM INCOME THRESHOLD- 

HIGHER MAINTENANCE SUPPORT STIPEND

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The stipend from The Student Loan Fund needs to increase. Röskva believes that the maintenance support stipend should be reviewed every year and raised in coordination with price change.

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HOUSING LOANS

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It is necessary to reconsider loans given for housing from The Student Loan Fund. In 2022, only 10% of the student at the University of Iceland live in student accommodation, which is why open market rent fees and the open market rent index should be considered when the rental fee for student housing is decided.

 

INCREASED MAXIMUM INCOME THRESHOLD

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Röskva demands that the maximum allowable income is annually reevaluated and that it at least always follows the advancement of the wage index in Iceland. If students are expected to work alongside their studies to support themselves, as is the case now, it is a natural requirement that the reduction in student loans due to income exceeding the maximum be low. Therefore, Röskva believes that the 45% reduction students now face is too high in a system which forces them to work with school.

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EDUCATIONAL INVESTMENT

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Röskva believes that the political debate that will be the basis of change in the student loan system has yet to happen. Such debate discusses how much students should be supported, namely how much the government should spend on education. Röskva demands that the self-sustainability viewpoint that the loan fund holds should be given up. It is obvious that funding for education is one of the best investments a nation can make and it returns vastly from what was invested. A key part of this is guaranteeing access to education and therein the student loan system has a big function.

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THE CAPITAL WRITE-OFF

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Following the adaptation to the laws about the Student Loan Fund, students that finish their studies on time get a 30% write-off on their loan capital. Röskva, however, demands a 40% write-off, such as is done in Norway. It is also vital that students do not need to apply specifically for a write-off if they fulfil all the requirements; it should come with the loan, without hindrance. The current system is considered too complicated. Röskva also proposes that the grant system be entirely after the Norwegian model, where a 25% write-off on the loan capital after every semester, in consideration of the credits students finish. An additional 15% write-off on the loan capital follows if students finish their studies on time.

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RÖSKVA PROTESTS AN INSECURE INTEREST ENVIRONMENT

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Röskva demands that the interest rate cap on both indexed loans and unindexed loans from the Student Loan Fund be significantly reduced. According to the Student Loan Fund laws, the indexed loan interest rate cap is 4%, while the unindexed cap is 9%. The changes that were made in the emergence of the laws regarding the loan fund included a certain uncertainty about credit terms and debt load. Röskva demands that the interest rate cap be brought back to 1%, as was the case with LÍN (the old student loan system).

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INCOME RELATED PAYMENTS

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The new Student Loan Fund laws include a change in the arrangement of income-related payments so that only those who finish their studies before the age of 36 have the right to it. Röskva deems it necessary that all loanees have the option of income-related payments so that the fund can fulfill its purpose as a social equalisation fund. Röskva believes that by this the fund is reducing opportunities for older people to begin their studies, which undermines the ideas about continuous education in the fourth industrial revolution. Röskva believes that this will negatively impact social mobility and decrease equal access to education.

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LOAN PAYMENTS

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Röskva demands that the deadline given between graduation and loan payments be prolonged. Students need to be given enough space to find a footing after their studies and a break from loans must be an option, e.g. decide on post-graduate studies. The deadline is now a single year. Rösvka, however, fights for it to be prolonged to at least two years.

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BURDEN BECAUSE OF DISCOUNTS

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Röskva is against presupposed interest burdens because of expected discounts (in case of e.g. death). That is how the costs of loans that will not be paid off are put on the shoulders of payers that meet their payments. Röskva believes that authorities should hold the risk of discounts, rather than increase the interest payments of those who pay their loan.

 

LOAN APPLICABLE CREDITS

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Röskva protests the fact that the maximum credits applicable for loans will be fixed at 480 ECTS, according to the law. It is unforeseen how the economy and education will change in the future, and it is therefore important to be flexible. Röskva wants the laws regarding the Student Loan Fund to specify a minimum, not a maximum. Considering the allocation rules of 2022-2023, students cannot receive a loan for a bachelor’s degree twice. Flexibility needs to be increased so that students can better arrange their applicable credits in accordance with their studies.

 

CHILDREN SUBSIDY

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Röskva celebrates the fact that with the adaptation to the Student Loan Fund laws, a child subsidy system has been implemented, along with child support payments. With these changes, parents will not have to go into more debt than others without children to get an education. It is vital to support in this manner the large group of parents at the university. Röskva demands that all parents get a subsidy for child support, regardless of whether they’re taking a loan or not.

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APPOINTMENTS TO THE BOARD OF THE STUDENT LOAN FUND

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Röskva deems it dubious that the Student Loan Officer in SHÍ – the representative of by far the largest university in the country – does not hold a seat secured by the law on the Student Loan Fund board anymore. Rösvka demands that SHÍ’s Student Loan Officer again gets a seat, bound by law, on the board.

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REGULAR REVISIONS OF THE STUDENT LOAN FUND

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Röskva proposes that a revision of the Student Loan Fund be bound by law to be every three years. Then it is possible to make sure that student interest of different periods is always at the forefront. Röskva deems it critical that students have a seat at the table during these revisions.

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APPLICATION DEADLINE

 

The application deadline, according to the Student Loand Fund’s allocation rules, is very early every semester. This has the effect that students have difficulty taking enlightened decisions about loans. Röskva, therefore, demands that the application deadline is in accordance with the course-withdrawal deadline.